A new report has revealed that 20 state governors borrowed a combined ₦458 billion within the first six months of 2024, raising fresh concerns about Nigeria’s debt profile. The loans were reportedly taken to fund infrastructure projects, clear backlogs of salaries, and sustain state budgets amid dwindling revenue.

Analysts warn that the rising debts of many states could worsen financial pressures if not properly managed. Some observers argue that while borrowing may provide short-term relief, it could also trap states in cycles of repayments without sustainable growth plans to generate revenue.

The development has renewed calls for state governments to focus on boosting internally generated revenue and cutting unnecessary spending. Economic experts also urged transparency in how loans are used, stressing that funds must directly impact citizens’ welfare to justify the growing debt burden.